5% of tax on profits paid by garment industry businesses will be paid back by a funding scheme

The Albanian government has compiled a law on facilities for garment industry businesses for the coming year. 5% of the tax on profits these businesses pay to the government will be paid back to them by a new fund scheme, an amount of 250 million ALL in 2015. The annual fund will be administered by the Ministry of Social Welfare and Youth and the amount of money that will distribute to businesses will increase annually.

After the approval of the law on the Council of Ministers meeting, Deputy PM Niko Peleshi said in a press conference the scheme will stimulate the economic growth and will help to decrease unemployment.

“The fund created by garment industry businesses’ tax on profits will be applied for the first time and will be administered by the Ministry of Social Welfare. The amount of money per year will be decided by the Ministry of Finances, based on the amount of money allocated by these businesses’ taxes. The novelty of this scheme is that it will serve as the basis for initiatives and backings not only by the government but also external and domestic donators which work in inciting the employment and the development of professional skills. The programs that will be funded by the scheme include professional trainings and programs for encouraging employment,” declared Peleshi.

The law will be implemented after being published in the official bulletin.

Pursuit to Article 100 of the Constitution and Point 3 of Article 8, of law number 7995, date: 20.9.1995. “For the Promotion of Employment”, changed, with the proposal of Minister of Social Welfare and Youth, the Council of Ministers decided:

1. The establishment of a budgetary fund in support of garment industry […]. The fund will be applied in 2015 and the annual amount will be decided by the Ministry of Finances.
2. The fund may have as financing source even donators or financial institutions.
3. The fund will support employers of the garment industry to promote employment, the development of workforce skills, as well as other forms of support, approved by the Council of Ministers.
4. All employers of the garment industry which will request support by this fund, will have to register at the Employment Offices.
5. The programs that will find support by this fund are:
   a) The existing programs of employment promotion, approved by the Council of Ministers;
   b) The programs of vocational training for different professions of this industry, predicted by the Ministry of Social Welfare;
   c) Programs and other supporting forms for employment promotion in professions of average and high level, through several investments in this sector.
6. The fund will be administered by the Ministry of Social Welfare and Youth.

The financial effects that will derive from the implementation of this decision will be programmed in the Ministry of Social Welfare and Youth budget.

News source/photo credits: Shqiptarja.com